VenturEast launches $150 million India fund

BENGALURU, India  Venture capital continues to pour into India on the heels of new investments by Google Inc. and Cisco Systems in recent days.

VenturEast said Wednesday (Oct. 31) it will create a $150 million fund in India. VenturEast, previously APIDC Venture Capital, said it will invest in both early-stage companies developing new technologies as well as companies using technology to gain market share.

The fund will invest in businesses that address "bottom-of-the-pyramid markets" along with small and medium businesses. VenturEast said its approach will differ from other VC firms by eschewing investment aimed at exporting goods the rest of the developed world.

VenturEast's investor base includes U.S.-based Argonaut Private Equity; Sedco of Saudi Arabia, a leading investor in India; and IFC, a member of the World Bank that focuses on private-sector development.

"Our thesis is to differentiate, enabling our investees and investors to be successful," Sarath Naru, managing partner at VenturEast, said in a statement. "Unlike other large-size VC funds, our model is based on the businesses and technologies that are relevant to India."